Losses up, revenue down at Advanced Cell
Losses mounted and revenue declined in 2013 for Advanced Cell Technology (ACT) of Marlborough, which announced its financial results for fiscal 2013 Tuesday.
ACT reported a $29.7 million operating loss for fiscal 2013, which ended Dec. 31, while revenue sank to $224,985, compared to $466,487 in fiscal 2012. The clinical-stage company, which makes treatments for vision ailments, posted a loss of $25.2 million in 2012.
The company also released restated financial results dating back to 2009 on Tuesday because of an error in accounting guidance related to stock warrants issued in 2005. ACT posted losses each year dating back to 2009, saying in a 10-K report that it generates a limited amount of revenue through licensing fees as it seeks to commercialize its treatments.
ACT had $1.74 million in cash at the end of 2013, compared with $7.2 million in 2012. Cash has dried up due to the termination of a licensing agreement with International Stem Cell Corp. in early 2013 and increased legal expenses and fines.
The company was embroiled in a civil action brought by the Securities and Exchange Commission alleging the company sold billions of shares of unregistered penny stocks, a matter was settled in December. The SEC is also looking into the alleged failure of former CEO Gary Rabin to report his sale of company stock on 27 occasions between 2011 and 2013.
ACT announced Rabin’s departure in January.
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